Indonesia's Nickel Ore Shortage Forces Production Cuts and Maintenance at IWIP Industrial Park

Published: May 19, 2026 14:33

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[SMM Nickel Flash] According to SMM, Indonesia's nickel ore mining quotas were significantly tightened in 2026, exacerbating the shortage of nickel ore supply. As a result, some high-grade NPI production lines in Indonesia have entered maintenance and production cuts since March-April due to ore undersupply and high costs. Coupled with the commissioning of new aluminum capacity within the industrial park and the reallocation of power resources, it is expected that in the coming months, 10-15% of existing high-grade NPI capacity at the IWIP industrial park will remain under rotational maintenance, with little prospect of a notable recovery in short-term supply.

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